The Fraisethrope wind park. Image by: Octopus Renewables.
Octopus Renewables Infrastructure Trust plc (LON:ORIT) on Thursday announced a proposal to raise about GBP 100 million (USD 141m/EUR 116m) in a share issue.
The renewables investor plans to issue up to 96.55 million ordinary shares at GBP 1.035 apiece pursuant to an open offer, placing, offer for subscription and intermediaries offer. The price is a premium of 6.3% to the net asset value (NAV) per ordinary share as at March 31, 2021, and a discount of 3.5% to the closing stock price on June 9.
The size of the issue could be increased to a maximum of 144.93 million ordinary shares. The issue itself is subject to the passing of the shareholder resolutions to be proposed at a general meeting scheduled to take place on or around July 6.
Octopus Renewables plans to use the proceeds from the issue when pursuing additional investment opportunities. Its investment manager has identified GBP 1.3 billion worth of renewable energy assets in the UK, Germany, Ireland, Poland, Sweden and Finland that would potentially be suitable for acquisition by the trust. It has undertaken preliminary due diligence in relation to this pipeline and has also made non-binding offers in relation to some of the assets. The company has exclusivity with respect to GBP 256 million worth of assets.
"This fundraising will enable us to maximise the opportunities from our strong pipeline of potential investments, continue our growth trajectory and develop the portfolio further,” said Chris Gaydon, Investment Director at Octopus Renewables.
As at June 9, 2021, the trust's portfolio consists of 24 renewable energy assets with a combined capacity of 315 MW, including 22 operational solar parks and two wind farms under construction. It also has conditionally acquired four solar and one wind asset.